While there are some exceptions, in general, investment advisors with less than $25 million in assets under management (AUM) that are located in New York, have more than 5 clients in New York, or actively solicit in New York must register with the State of New York as a Registered Investment Advisor (RIA).
New York Investment Advisor Registration Process
Investment Advisor Registration Financial Statement Requirements:
- RIAs registered with the state of New York must submit both a balance sheet and income statement.
Investment Advisor Representative (IAR) Registration Requirements:
- Licensing Requirements: Series 65, Series 66 and Series 7 combined, or one of the following acceptable professional designations: CFA, CFP, CIC, ChFC, PFS.
- Each investment advisor representative must submit the form U-4 and ADV Part 2B.
General Firm Registration Requirements
- Payment of all State of New York registration filing fees
- The state of New York requires registered investment advisors to pay an annual registration fee for the advisory firm and each registered individual. These fees are paid at the time of the initial investment advisory firm registration.
- FINRA Entitlement paperwork
- In order to file a registered investment adviser application with the state of New York, one must first apply to the Financial Industry Regulatory Authority (FINRA) for an account (Entitlement) to their WebCRD/IARD on-line system (the web application for the registration of RIA’s and their representatives). While RIA’s are in no way regulated or supervised by FINRA, the state of New York uses FINRA’s WebCRD/IARD system to process applications.
- Form ADV 1 (online)
- The Form ADV Part 1 is the on-line component to your Firm’s registration documentation. Note: The Form ADV Part 1 primarily discloses information about the FIRM. Individual information is primarily disclosed in the Form U4 as detailed below. The Form ADV Part 1 is also the vehicle to upload your Firm’s Form ADV Part 2A (Firm Brochure) and Form ADV Part 2B’s (Brochure Supplements).
- Form ADV 2A (paper and online)
- The Form ADV Part 2A acts as your Firm’s Brochure. It is a narrative description of your services, fees, disciplinary disclosures, as well as several other Firm details. The Form ADV Part 2A must be provided to all Clients and Prospective Clients. The state of New York requires that the ADV Form 2A be written in “plain English” and easily understood by your clients.
- Form ADV 2B (paper and online)
- The Form ADV 2B is the paper brochure that Investment Adviser Representatives must (in most cases) provide to clients. This form contains employment, educational, conflict of interest, and disciplinary information. Generally, Executive Officers, any person generating investment advice provided to clients, and any representative advising clients must have a Form ADV Part 2B.
- Client Advisory Contract
- Client Advisory Contract including an investment policy statement that meets the appropriate regulatory authority standards for client advisory contracts in New York state.
- Policies and Procedures Manual
- The firm’s Policies and Procedures manual is the guiding document that your firm will use to maintain and enforce your firm’s internal policies on all aspects of your business from the handling of client complaints to the training of new Investment Adviser Representatives. It also houses your firm’s Business Continuity Plan, Information Security Policy, Anti-money Laundering Policy, and Anti-insider Trading Policy.
- Privacy Policy Statement
- The Firm’s Privacy Policy Statement must be provided to all clients at the beginning of the client relationship and annually thereafter. It must disclose how the firm stores, and handles and disseminates client information. Privacy Policy Statements are built to your firm’s specifications and designed to meet State of New York compliance requirements.
- Code of Ethics
- Code of Ethics filing ensuring that you meet the standards of the State of New York.
